GST penalty: Companies can apply for revocation of GST registration cancellation by June 30 after paying taxes, penalty

The federal government has allowed companies, whose GST registrations had been cancelled for non-filing of returns, to use for revocation of the cancellation by June 30, after paying due taxes, curiosity and penalty. The finance ministry has made amendments within the Central GST act specifying that companies whose registration has been cancelled on or earlier than December 31, 2022, and who’ve failed to use for revocation of cancellation inside the specified interval can accomplish that by June 30, 2023.

Nonetheless, the appliance for revocation shall be filed solely after furnishing the returns due as much as the efficient date of cancellation of registration and after cost of any quantity due as tax, when it comes to such returns, together with any quantity payable in direction of curiosity, penalty and late charges.

No additional extension of time interval for submitting utility for revocation of cancellation of registration shall be accessible in such instances, as per the finance ministry notification.

This may act as aid for taxpayers since as per legislation, Items and Companies Tax (GST) payers have solely 30 days time to use for revocation of registration cancellation order.

The GST council, comprising finance ministers of centre and states, had in its earlier assembly in February, beneficial that for such GST taxpayers whose registration has been cancelled for non-filing of returns be given amnesty by permitting such individuals to file utility for revocation inside a specified date.

Additionally, the finance ministry has capped the late price at Rs 1,000 for the registered individuals who fail to furnish the ultimate return in Kind GSTR-10 by the due date, supplied they furnish the mentioned returns by June 30, 2023.

GSTR-10 is a ultimate return filed by these taxpayers who’ve determined to cancel its GST registration. As per legislation, this return needs to be filed inside three months of choosing cancellation of registration. By means of one other notification, the federal government has additionally rationalised late price for delayed submitting of annual return in Kind GSTR-9 for FY 2022-23 onwards, for MSME tax payers with turnover as much as Rs 20 crore.

These with an combination turnover of as much as Rs 5 crore within the mentioned monetary 12 months can be charged late price of Rs 50 per day, topic to a most of an quantity calculated at 0.04 per cent of his turnover.

Registered individuals having an combination turnover of between Rs 5 crore to Rs 20 crore within the mentioned monetary 12 months can be liable to pay late price of Rs 100 per day, topic to a most of an quantity calculated at 0.04 per cent of his turnover.

AMRG & Associates Senior Companion Rajat Mohan mentioned the federal government has unleashed a number of amnesty schemes for taxpayers nudging them to conform and file pending GST returns by June 30, 2023.

“Honest amnesty schemes have been supplied to composition taxpayers, non-filers of ultimate returns, and taxpayers whose GSTN has been cancelled. These amnesty schemes would deliver defaulting taxpayers into the mainstream and increase tax collections within the long-run,” Mohan mentioned.